FEATURE
The Key to Unlocking the ASEAN Store of the Future
2020 has proven to be a challenging year . Retailers around the world , especially in the ASEAN region , are bearing the brunt of the pandemic , with retail businesses having to cope with unprecedented demand , digitalization , supply chain challenges and even customer behavior changes , defining a “ new normal ” for many .
The COVID-19 pandemic has accelerated the digital transformation journey for many businesses , with retailers in Southeast Asia prioritizing digitalization to achieve growth in a post-COVID-19 era . To ensure business continuity in such times , reports have shown that businesses have quickly embraced digital technology such as artificial intelligence ( AI ) capabilities and cloud adoption .
Along with this , the uptrend in online shopping is set to continue , having already begun pre-pandemic due to the convenience it presents , with essential goods , groceries , and food delivery , and even non-essential items such as computers and telecommunications equipment all readily available and accessible . Amidst the pandemic , unprecedented demand for essential goods has created substantial worldwide shortages .
However , the traditional retail model is far from dead .
E-commerce has not made brick-and-mortar stores obsolete , contrary to what headlines would suggest . The 2021 Zebra Shopper Study found that shoppers have connected the lines between in-store and online activities and that there has been an increase in online activities year-on-year . It was reported that 57 % of shoppers placed an order online for delivery to be made . Up to 45 % of shoppers looked up store information online , while 29 % ran an online check on the inventory of the product before even visiting the store .
Retailers have not been forced to abandon the operating principles that have sustained storefronts for many decades either . The convenience of online shopping has compelled retailers to set and strive for new customer experience , operating efficiency and inventory efficiency standards to appease 21st century shoppers who , as a result of the internet , expect instant gratification — whether in the form of information , products or services .
With an abundance of information and choice present , retaining customer loyalty is becoming more difficult . Not all purchase decisions are persuaded by
13 low prices . Convenience – or the lack of it – can greatly influence shoppers ’ transactions . The same Zebra Shopper Study found that there are three leading reasons for shoppers leaving a store without making a purchase . 41 % cited that they have done so because their desired item is out of stock , while 32 % cited the length of the checkout queue as a reason . Another 31 % cited that they left because they couldn ’ t find the item on display .
If retailers in ASEAN want to win and retain shoppers ’ loyalty today , they must modernize their stores and supply chains . According to the same Zebra Shopper Study , 85 % of retail associates said that technology helps them provide a safe , comfortable and convenient experience for customers . Retail associates also cited that checking price ( 56 %) and inventory ( 52 %) are the most important and valuable uses of technology . Clearly , there is no substitute for personal service . However , it ’ s quite apparent that personal service can be optimized by technology . It ’ s the key that keeps customers coming back again .
However , retailers in this region might find it difficult to determine which technologies truly give them the ability to sense what is happening in their operations or in the market and analyze the reasons . Without the right technologies in place , it is nearly impossible to know how to “ act ” in real time to resolve issues that could negatively impact a shopper ’ s in-store experience , such as a misplaced item that could look like it is out of stock .
Retailers and technology solution providers all over the world , including Zebra , are participating in concept stores or conducting in-store pilots . These programs aim to test new technologies such as radio-frequency identification ( RFID ) locationing systems , automation solutions and mobility platforms to learn which ones improve the in-store shopping experience for customers prior to implementing at scale .
Such pilot programs could potentially answer questions like whether track-and-trace systems will improve real-time inventory management and , specifically , replenishment actions . How effective could that same system be in helping a retailer understand which items have been tried and purchased versus those that have been left in a dressing room or put back on the shelf ?
Some brands may just want to know if the investments they are making in new mobile computers at the point of sale and workflow software in stockrooms are enough to gain the intelligence they need to better serve customers . They may also require insight into the need to integrate additional layers of “ intelligent ” technologies , such as an IoT platform or a prescriptive analytics solution , to make those devices — and the workers using them — as smart as they need to be in today ’ s retail environment .
ASEAN retailers must move from “ systems of record ” to “ systems of reality ” if they want to sustain the success of their physical stores in a digitally empowered economy . Only those with a certain level of operational intelligence and agile execution can adapt to changing market dynamics in real time and meet customer
expectations every time they walk in the store .
Technology remains the root to retail success . In fact , Zebra ’ s 2019 Intelligent Enterprise Index showed that 61 % of enterprises worldwide are on the path to becoming “ intelligent ”. Though many are on their way , the pandemic has quickened the pace in which retailers need to evolve their operations . This comes in the form of evolving both their online and their brick-and-mortar stores .
As such , before revamping store operations and redefining the role of the store , retailers in ASEAN must conduct a proper assessment and evaluation of their business ’ operational gaps and technological needs . There is no one-size-fits-all approach . Every retailer in this region has a unique and different set of problems , and it is essential to engage with solution providers that are able to take the time to assess and address all pain points across the retailer ’ s entire operations , from the store-front , to the back-end and even its supply chain before recommending , implementing , refining or scaling any technology solution .
For more information , please visit : Zebra ' s retail solutions
ABOUT THE AUTHOR : George Pepes
APAC Vertical Solutions Lead , Healthcare and Retail , Zebra Technologies